Impact of Soaring Upstream Values on the Ammonium Carbonate Market
- 21-Apr-2022 12:16 PM
- Journalist: Nina Jiang
The price of Ammonium Carbonate increased again this week, continuing the upward trend set by the global rise in Ammonia costs. Upstream nitrogen and coal prices and high natural gas prices pushed Ammonium Carbonate prices higher. Ahead of the next Kharif season in India, downstream end-users and notable farmers have been worried about the country's fertilizer prices. Prices in the global market have been rising for a long time due to increasing upstream values such as Natural Gas and Coal.
Due to rising gas costs, increased demand, supply concerns, and market disruptions in the United States, ammonium carbonate prices have been continuously growing for an extended period. Because total inventory levels in all key sectors are far below historic levels, the downstream agricultural manufacturers are concerned about a lack of fertilizer supplies, even if consumption has remained strong.
Prices for several commodities have risen due to Russia's invasion of Ukraine, putting pressure on fertilizer expenses. Due to China's importance as a Carbonate supplier, South Korean logistics companies face the brunt of China's export restrictions, which have driven up Ammonium Carbonate prices in the region. Additionally, producers mentioned the difficulties they had procuring raw materials and the increased cost of freight.
As per ChemAnalyst, "The high adoption of Ammonium Carbonate in the smelting industry and its usage as a fertilizer in the agricultural sector has increased demand in the domestic market, and prices are expected to rise even further in the coming months. With consistent demand from pharmaceuticals, textiles, and agrochemicals, Ammonium Carbonate is expected to soar high further. As feedstock Ammonia's shortage in the global market is likely to persist till the next month, its prices in the domestic market are expected to exert continuous pressure upon the merits of its derivatives."